Xiaomi and Li-Ning have announced that the low-cost device manufacturer and the sports equipment and shoes company will be teaming up to develop smart running shoes.

Li-Ning will be forging a partnership with Huami, which is Xiaomi's fitness-focused wearables arm, for the development of the shoes that will feature a chip within their sole to give feedback to the wearers regarding running form and progress.

Reuters reported that the Xiaomi mobile app related to the smart running shoes will be giving the feedback, and will also be able to track running achievements.

Li-Ning made its mark during the 2008 Beijing Olympics, when the company unleashed several marketing efforts and created sponsorships with certain athletes. The founder of the company, retired Chinese gymnast Li Ning, was the one that lit the torch at the start of the event.

The sales of Li-Ning grew due to the consumer interest generated from the 2008 Olympics. However, the company's revenue has tumbled over the past few years, with the company announcing in January that it will be posting a net loss for the third straight year.

Li-Ning is currently going through many challenges, most of which is that the demand for its products is mostly only coming from within China. Worldwide interest in Li-Ning's products has tapered off since the 2008 Olympics.

The fortunes of Xiaomi, on the other hand, are opposite to what Li-Ning is currently experiencing. The company has made a mark on the worldwide smartphone market by releasing devices that look and function similarly, or maybe even better, compared to the products of market leaders Apple and Samsung, but Xiaomi's devices being sold at a fraction of the price of the devices of its rivals. Xiaomi is not only focused on smartphones though, as the company has produced other electronics such as a set-top box and an action camera that resembles the GoPro cameras.

The smart running shoes would then combine Li-Ning's sports sneakers expertise with Xiaomi's technological knowledge. The project would also place the companies in competition with other fitness-focused wearables companies such as fitness tracker manufacturer Jawbone and Nike, which also has Nike+ apps that function similarly to what the apps for the smart running shoes will offer.

Li-Ning said that the smart running shoes will be sold at affordable prices, though the actual price and release date of the product has not yet been set. If the product finds success, however, it could increase worldwide demand for its products and pull up Li-Ning's earnings.

Photo: Amao Dong | Flickr